Stage Stores recently aimed to reduce costs and preserve liquidity in response to increasingly challenging market conditions and the impact of the pandemic.
The steps include temporarily closing all 738 of its stores. Prior to the closings, the company had approximately 393 stores closed in compliance with state and local regulations. The company’s stores closings are primarily located in smaller markets and have been operating with reduced hours.
The company also is furloughing virtually all the company’s associates in stores, field support roles and at distribution centers. In addition, 87% of the employees at its Houston support center are being furloughed, effective March 29. All furloughs will continue until further notice. The company has identified 80 key associates who perform essential functions who are not subject to furlough at this time. While the company will not pay wages to furloughed associates, it will continue the eligible furloughed associate’s health and welfare benefits.
Stage Stores is also reducing pay by at least 25% for the members of the executive leadership team. Members of the company’s board of directors will not receive compensation during this period.
The company said it will continue to both explore additional opportunities to reduce costs in the near term and evaluate additional measures to preserve liquidity.
“With the health and safety of our associates and guests as our top priority, we are taking difficult but necessary actions in a challenging market and in the face of the unprecedented COVID-19 situation,” said Michael Glazer, CEO, Stage Stores. “We are grateful to all of our associates for their dedication and commitment to serving our guests.”